Dhaka: The Ministry of Finance has announced a significant shift in the handling of government revenues and receipts, stating that from July 1, 2026, the manual challan method will be completely abolished in favor of a mandatory automated system known as ‘A-Challan’.
According to United News of Bangladesh, this decision, outlined in a circular issued on Tuesday, aims to enhance transparency in public fund management, improve cash handling, secure real-time digital deposits, and reduce the government’s interest expenses caused by hidden liquidity pools. Under the Constitution of Bangladesh and Treasury Rules, it is mandatory for all government revenues and receipts to be deposited into the ‘Consolidated Fund’ or ‘Public Account of the Republic’ via the Treasury Single Account (TSA) maintained at Bangladesh Bank.
The government introduced the ‘A-Challan’ system during the fiscal year 2018-19, using a 5-digit economic code, to ensure real-time deposit of revenues. However, the Finance Division has observed that several government offices continue to bypass the TSA framework, opting for outdated manual codes and unlawfully maintaining separate bank accounts in various commercial banks.
This unauthorized practice obscures the government’s ability to determine its actual, real-time net cash balance. As a result, even with substantial cash spread across commercial bank accounts, the state is compelled to borrow from domestic and foreign sources at high interest rates to meet immediate expenditures.
To address this financial challenge and reduce borrowing costs, the government has imposed three immediate directives. The manual challan system will be entirely phased out by July 1, 2026, requiring a full transition to the automated ‘A-Challan’ system for all public revenues and receipts.
In addition, any independent financial systems or arrangements currently operational within ministries, departments, directorates, and subordinate offices for collecting and depositing revenues must be cancelled immediately. Furthermore, all funds presently held by government offices in commercial banks must be transferred to the TSA at Bangladesh Bank using designated economic codes through ‘A-Challan’ by June 30, 2026.